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State Street
(NYSE:STT)
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Rating:71Outperform
Price Target:
$170.00
â–²(16.89% Upside)
Action:Reiterated
Date:05/27/26
STT scores well on technical strength and a constructive earnings outlook (raised guidance, strong inflows and operating leverage), supported by reasonable valuation. The main drag is financial quality risk from highly volatile and currently deeply negative TTM operating/free cash flow, alongside moderate leverage and rising expense expectations.
Positive Factors
ETF leadership and scale
Market-leading ETF distribution and huge inflows deepen client relationships, raise recurring fee capture, and reinforce scale advantages in trading and liquidity. Leadership in the SPDR franchise supports durable asset-gathering economics and sticky AUM-driven fees over multiple market cycles.
Negative Factors
Negative cash flow volatility
Deep, erratic negative operating and free cash flow undermines the quality of reported earnings and increases dependence on external funding or capital markets for liquidity. Persistent cash conversion volatility makes sustaining buybacks/dividends and funding strategic investments more uncertain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
ETF leadership and scale
Market-leading ETF distribution and huge inflows deepen client relationships, raise recurring fee capture, and reinforce scale advantages in trading and liquidity. Leadership in the SPDR franchise supports durable asset-gathering economics and sticky AUM-driven fees over multiple market cycles.
Read all positive factors
State Street Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Data provided by:
The Fly
The FlyState Street (STT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.24B
Dividend Yield2.43%
Average Volume (3M)2.11M
Price to Earnings (P/E)17.1
Beta (1Y)1.04
Revenue Growth1.43%
EPS Growth10.86%
CountryUS
Employees52,711
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)10.01
Shares Outstanding276,767,030
10 Day Avg. Volume2,681,520
30 Day Avg. Volume2,107,305
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)1.32
Price to Sales (P/S)1.62
P/FCF Ratio8.55
Enterprise Value/Market Cap-1.11
Enterprise Value/Revenue-2.31
Enterprise Value/Gross Profit-3.65
Enterprise Value/Ebitda-11.52
Forecast
1Y Price Target
$172.82Price Target Upside18.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)12.76
Revenue Forecast (FY)$15.44B
State Street Business Overview & Revenue Model
Company Description
State Street Corporation (STT) is a well-established global financial services firm that delivers a wide array of financial products and specialized services to institutional investors worldwide. The company's extensive offerings include core inve...
How the Company Makes Money
State Street makes money primarily by charging fees and earning spread-based income from providing financial services to institutional clients. A major source of revenue is fee income from investment servicing activities (e.g., custody, fund admin...
State Street Earnings Call Summary
Earnings Call Date:Apr 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance for Q1 2026: record revenues, double-digit growth across key lines (fee revenue, NII), strong inflows and ETF leadership, meaningful operating leverage and upgraded full-year guidance. Strategic initiatives (digital assets, tokenization, AI, software/SaaS momentum) reinforce longer-term growth optionality. Challenges include higher expense growth and raised expense guidance, a modest quarter-end CET1 decline due to RWA normalization, $130 million of notable items, and some uncertainty around platform distribution fee changes and potential moderation of Markets volatility. Overall, the positives—scope, scale, upgraded guidance, and execution on strategic initiatives—materially outweigh the manageable headwinds called out by management.Positive Updates
Record Quarterly Revenue and Strong EPS Growth
Total revenue reached a record $3.8 billion, up 16% year-over-year. Reported EPS increased 22% year-over-year; EPS excluding notable items grew 39% year-over-year.
Negative Updates
Expense Growth and Higher Expense Outlook
Operating expenses increased 9% year-over-year (excluding notable items). Full-year expense guidance was raised to 5–6% (from 3–4%), driven mainly by revenue-related costs and strategic investments; currency translation added ~2 percentage points to expense growth in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong EPS Growth
Total revenue reached a record $3.8 billion, up 16% year-over-year. Reported EPS increased 22% year-over-year; EPS excluding notable items grew 39% year-over-year.
Read all positive updates
Company Guidance
State Street updated full-year guidance reflecting a stronger Q1: fee revenue growth is now expected at 7–9% (up from 4–6%), net interest income (NII) growth 8–10% (vs. prior low single digits) driven largely by net interest margin (Q1 NII $835M, NIM 116 bps, a 16 bp expansion; average interest‑earning assets +1%), and expenses now expected to rise 5–6% (vs. prior 3–4%), with an effective tax rate of ~22% and a targeted total payout ratio of roughly 80% (Q1 capital return was $633M — $400M buybacks + $233M dividends, Q1 payout ~90%); Q1 underlying results that inform the guide included record total revenue $3.8B (+16% YoY), fee revenue $3.0B (+15%), expenses $2.7B (+9%), ~400 bps pretax margin expansion (and >600 bps positive operating leverage excl. notable items), ROTCE ~20% (up ~4 pts), AUCA $54.5T (+17%), AUM $5.6T (+20%) with $49B net inflows ($25B in ETFs, SPYM $27B inflows), software ARR +12% and backlog +11%, and Q1 notable items of $130M pretax ($0.35/sh after tax); CET1 was 10.6% at quarter end.State Street Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.75B | 22.63B | 21.97B | 18.37B | 13.67B | 12.03B |
| Gross Profit | 14.39B | 13.88B | 12.84B | 11.90B | 12.11B | 12.06B |
| EBITDA | 4.56B | 4.29B | 4.00B | 3.20B | 4.48B | 4.73B |
| Net Income | 3.06B | 2.94B | 2.69B | 1.94B | 2.77B | 2.69B |
Balance Sheet | ||||||
| Total Assets | 392.17B | 366.05B | 353.24B | 297.26B | 301.45B | 314.62B |
| Cash, Cash Equivalents and Short-Term Investments | 142.11B | 146.02B | 134.55B | 136.24B | 146.20B | 183.45B |
| Total Debt | 30.18B | 29.80B | 36.79B | 24.37B | 18.27B | 15.18B |
| Total Liabilities | 364.42B | 338.21B | 327.91B | 273.46B | 276.26B | 287.26B |
| Stockholders Equity | 27.74B | 27.84B | 25.33B | 23.80B | 25.19B | 27.36B |
Cash Flow | ||||||
| Free Cash Flow | -11.85B | 4.29B | -14.14B | -126.00M | 11.22B | -7.52B |
| Operating Cash Flow | -11.22B | 5.35B | -13.21B | 690.00M | 11.95B | -6.71B |
| Investing Cash Flow | -2.80B | -13.05B | -39.48B | 12.74B | 6.82B | -2.17B |
| Financing Cash Flow | 27.02B | 8.99B | 51.79B | -13.35B | -18.43B | 9.05B |
State Street Technical Analysis
Positive
145.43
Price Trends
158.26
Positive
143.35
Positive
131.55
Positive
Market Momentum
3.76
Positive
63.51
Neutral
46.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 145.43 is below the 20-day moving average (MA) of 167.05, below the 50-day MA of 158.26, and above the 200-day MA of 131.55, indicating a bullish trend. The MACD of 3.76 indicates Positive momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.
State Street Risk Analysis
State Street disclosed 1 risk factors in its most recent earnings report. State Street reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
State Street Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $32.66B | 18.39 | 14.45% | 2.21% | -5.75% | -10.69% | |
72 Outperform | $43.97B | 11.99 | 61.59% | 1.26% | 6.43% | 36.14% | |
71 Outperform | $47.24B | 17.05 | 11.09% | 2.43% | 1.43% | 10.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $15.42B | 28.13 | 9.65% | 2.30% | -26.37% | -49.86% |
* Financial Sector Average
STT
State Street
170.69
63.69
59.52%
AMP
Ameriprise Financial
489.16
-40.19
-7.59%
CG
Carlyle Group
42.83
-10.75
-20.06%
NTRS
Northern
176.50
50.85
40.47%
State Street Corporate Events
Business Operations and StrategyShareholder Meetings
State Street Shareholders Back Board, Pay and Auditor
Positive
May 26, 2026
At State Street’s annual meeting on May 20, 2026, shareholders representing about 87% of outstanding common stock voted on director elections, executive pay, auditor ratification and a governance-related shareholder proposal. All 13 board no...
Business Operations and StrategyPrivate Placements and Financing
State Street Boosts Liquidity With New Senior Notes Offering
Positive
Apr 24, 2026
On April 24, 2026, State Street Corporation issued $800 million of fixed-to-floating rate senior notes due 2032 and $700 million of fixed-to-floating rate senior notes due 2037 in a public offering, under an existing indenture structure with U.S. ...
Business Operations and StrategyFinancial Disclosures
State Street Posts Strong First-Quarter 2026 Financial Results
Positive
Apr 17, 2026
State Street on April 17, 2026 reported a strong start to the year, with first-quarter 2026 diluted EPS of $2.49, or $2.84 excluding notable items, and total revenue of $3.8 billion, up 16% year on year as of March 31, 2026. The bank delivered rec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.